The Sindh High Court has restrained Sui Southern Gas Company Limited (SSGCL) and Oil and Gas Regulatory Authority (Ogra) from levying and collecting Gas Infrastructure Development Cess (GIDC) in pursuance of a presidential ordinance.
In its order that it issued on September 29, 2014, the court said the counsel for the plaintiff, Dr Farogh Nasim, submits that originally the recovery of Gas Infrastructure Development Cess Act was challenged by virtue of filing a writ petition before the Peshawar High Court and consequently in terms of the judgement reported in 2013 PTD 1713 such recovery was held to be ultra vires, unreasonable being not based on reasonable differentia or fulfil corresponding responsibility and liability in a specified manner by the respondents. Such judgement was challenged before the Supreme Court which came up for hearing and ultimately the judgement of the Peshawar High Court was upheld and it was observed that GIDC is a fee and not a tax and in the alternate it is not covered by any entry relating to the imposition or levy of tax under Part-I of the Federal Legislative List. According to the court, the counsel submits that in order to undo such observation and judgements of the Peshawar High Court and Supreme Court, an Ordinance has been promulgated which is nothing but an act of invalidating the judgements. The counsel further submits that such can only be done by an act of Parliament by majority of 2/3rd and unless an amendment in Schedule-IV is made such recourse by promulgation of Ordinance cannot be held justified.
Issuing notices to respondents, Petroleum Ministry, SSGC and Ogra, the court, in the meantime, restrained SSGC and Ogra, from "raising such demand or issuing such bills in pursuance of the Ordinance No VI of 2014."